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tv   Power Lunch  CNBC  January 11, 2018 1:00pm-3:00pm EST

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a sftock stock that makes fresh highs, i like the name. >> jacobs engineering, buy it. >> and nrg bought it today. >> delta. >> keep on buying it. >> both, buy them today. >> thanks for being here scott, thank you very much i'm tyler mathisen here is what son the menu this day. rally ho stocks surging to new highs as we kick off earnings season. could this be a record-breaking quarter for corporate america? wee debate that one. call it tax law euphoria america's biggest employer raising wages. walmart boosting hourly pay giving bonuses what was supposed to happen. created new benefits how many more companies may follow walmart's move? and bitcoin backlash cryptocurrencies lammed china cracking down. u.s. lawmakers taking aim and
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one of the world's biggest crypto markets may ban trading altogether we are all over it "power lunch" begins, right now. and welcome to "power lunch. i'm melissa lee. we are around session highs now. the dow, nasdaq, s&p 500, across the board, green, nasdaq seeing the biggest gain up 0.7 of 1%. transportens hitting new record highs. and hitting $70 first time in three years. crude just under $65 a barrel. movers, delta higher on earnings, raising 2018 outlook thanks to the effect of tax reform dfc systems a pop. software provider bought by a technologies company for about $5.5 billion and xerox up by 4.5% on reports
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it's in talks to strike a major deal with japan's fujifilm >> melissa, thank you. what else is happening at the house. epa says fuel economy in new cars in the u.s. expected to hit 25.2 mimes per gallon in 2017 vehicles the senate banking committee votes next week, second time on the nomination of jerome powell. to be your next federal reserve chairman. more on the deadly mudslides in california. rescuers frantically serving for survivors. mud and stones crushing the community in montecito at least 17 dead 8 more missing live on the scene ahead in "power lunch." >> reporter: i'm michelle caruso-cabrera in wenatchee, washington three hours east of seattle. a very small town turned into a mecca for bitcoin minors here in the united states. this is one of 12 bitcoin mines in this it area. why are they all coming to
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wenatchee? i 0 explain, coming up later here on "power lunch." guys, back to you. >> all right thanks michelle. the bulls are in charge this hour stocks sitting around session highs as we mentioned. get straight to the access bob pisani, new york stock exchange. >> hello three to one advancing in declining stocks more than 250 new highs. the dow jones industrial average, we passed ignites buying at that point saw etf traffic pick up, hitting 25,500 and the mexican finance minute sister, nafta talks advancing in an orderly monanner. inflation trade. economies expanding around the world arnold see it again today. materials industrials, consumer discretionary, energy and
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transport, forkelks, ratthat's e reflation trade. and energy names moving up look at the dow laggards consumer staples and health care proctor, mcdonald's, coke, lagging behindpfizer lagging. and delta, positive things yes about tax reform what else they said, outlook for corporate travel spending, the best in three years. that's exactly a reflation trade comment. right now just off the highs of the day. back to you. >> bok, thank you. see you in a bit meantime, higher interest rates becoming the story of the markets this year. there are a lot of questions out there how rates may affect inflation and the fed, not a lot of don't about one group of stocks you can make money off higher rates in. brad mcmillan, chief investment officer commonwealth financial network and bruce bittals, chief
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strategist with baer they don't agree with everything, based on my notes, seems you both agree that banks and financials are going to be a good place to make money this year how come all a rate story >> i don't think it's just a rate story the rate story is what people are talking about and it's real. a real story, but the big story is deregulation. banks, the financial companies, able to do things they haven't been able to do for years because of the regulations, they're dialed back. whole new areas of businesses opening up to them that's the real story here. >> what's the risk, though, from higher rates brad, we know financials will do well, because of this other stu we'll be talking about there's got to be some down side from a macro perspective to higher rates minimum, bonds become a little more attractive. do they not? >> bonds do become more attractive but the question you have to ask yourself is, why are rates rising, and the answer is, things are growing faster. we'll see the upside effects on stocks outweigh the negative effects. you get to a break point when
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rates hit probably 3% or 4%. we're nowhere near there right now, still in the sweet spot. >> bruce, optimism is high practically everybody is saying sort of. what brad just said. the path of least resistance is up what do you think? >> yeah, one area, technical analysis, that is a fly in the oirntme me ointment here. a lot of optimism. certainly supported. the markets have been supported by an economy that's been underestimated in terms of its strength, potential and potential for earnings going forward. that's really the important news right now. >> sounds almost, bruce, like you're a reluctance optimist what you see in the charts, krish contradicting what you feel is a fundamental base for stocks. you said the up trend is there you note 80% of s&p 500 stocks above the moving interday
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averages a lot of people consider that overbought is there a conflict there? >> i don't think so. look at the market on a longer-term perspective than that a healthy bull market, everything is going in the same direction. big stocks, small stocks, value stocks, growth stocks and foreign stocks sthats what we're experiencing today. not only in the stocks in the indices as well. almost an indices are making new highs today. >> brad, where would you put incremental money this year? would it be into those financials or what >> i would put incremental money in international markets staying in the u.s., look at financials, industrials, at energy also look abroad, because the valuations and the growth are actually as strong or stronger as they are in the u.s. >> world is a big place. where abroad any particular region or just a diversified, you know, world index fund
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>> i like japan. i like india those are the two best opportunities right now. i would be cautious about europe i don't think the political risk is fully priced in, but i think the merging markets and japan, the places to you. >> bruce, you overlap with brad liking financials as well as energy in terms of consumer discretionary, another favorite area of bruce. what's the bull case there some say at least for retailers, we saw a short covering rally given momentum >> there's more to it than that. retailers benefit in two areas one, they typically pay the full toll in terms of taxes the new tax legislation will benefit them enormously, and number two, their clients. their customers are having much more disposable income because of the tax ut. i think there's a real case for the consumer discretionary secretarier this year. >> brad and bruce, thank you
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very much. >> thank you, brian. >> thank you all right. go to michelle in wenatchee, washington michelle actually, rick santelli. >> rick santelli i apologize but correct in the general direction. chicago is west of here as is wenatchee, washington. >> yeah, yeah. it's a few miles, what's that among friends? a-minus and a for tenure and a for 30-year demand even though it's a reopening originally auctioned off, two auction cycles ago 30 year bonds bought in a big way by investors look at the intraday chart dropped two basis points on 10s and 30s. go through it. 12 billion, 2.867, the yield at the dutch auction. that was below the low of today in the one issued market, lower yield, market price. bid to cover amazing. 11-year history on 30-year bonds
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and have no number closest the highest i have 71.5 sorry. 2.74 is best since january 13th. 71.5 on indirects blows the b e doors off. verse 8% on direct 8% the 10 auction average. the only minor fly wing in the ointment solid auction. this addresses that even though rates have gone up and it's a big story, investors like the concession and barreled in to do some buying. back to you. >> all righty. thank you very much, rick. walmart is the latest company to give out bonuses and raise wages while crediting the new tax law. courtney reagan has details. this is what people said might well happen. >> right. >> as a result of this -- and it seems to be happening. >> yeah. walmart's a pretty big company the one to step on in. the world's largest retailer and the world's largest private employer given $1 million plus
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of u.s. employees a bonus, wage increase and enhanced parental benefits thanks to the new tax reform bill. eligible hourly associates get somewhere between $200 to a $1,000 bonus based on tenure at the company. increasing starting wage to $11 up from $10 currently. once that goes into effect, hourly pay ranges from $11 to $24.70 beyond the one-time bonus and pay increase, full-time associate eligible for ten weeks paid maternity leaves, six weeks paid parental leave. increase from six to eight maternity leave, half or 60% pay and no parental leave putting the full-time hourly associates and salaried employees at parity for the benefits walmart offering to pay $5,000 for its adoption expenses. the coo, further assessing further opportunities the tax reform might create for the
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retailer that announcement comes out february 20th. doesn't sound like it's the end for walmart, only the beginning. >> this is not nearly, you point out, a one-time bonus. this is ongoing races and benefits much more expansive. >> exactly right look, walmart didn't have to do this no companies have to do this but many of the retailers came out and said we need tax reform. really crippled and so it looks like they've turned around said, hey, thanks. we're going to do this for employees and might just spend the money in stores. right? >> if you can avoid it, do you think other retailers now have to follow? makes competition from employees that much harder. >> yes very possible. that's what happened when they start raising wages. walmart wasn't first fairness, began was first to raise minimum wages. took walmart a while, but they're so big, created others to raise wage es. >> target did this, and walmart
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back when they reported in november raise guidance for 2018 i don't know if all taxed. any disappointment on the part of analysts they didn't do that with this announcement >> not as far as we can tell and laid out clearly what the financials, the new impacts will be of both the one-time bonus and this new increase in wage. it's not nearly as much as it was when they did the increase from the $9 and $10, because so many employees were below that so many frankly are at $11 and above, just bringing everybody up to that. >> and guidance again on tax impact >> right no as far as we can tell, notty appointment from analysts because they did not do that. >> thank you courtney reagan. the other big story of the day. global crackdown, bitcoin, down about 7% or so on coin base now. south korea preparing a bill banning all crypto surcurrently trading. one of the biggest and the "wall street journal"
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reports china's ordering the closure of bitcoin mining operations tightening a clamp down already shut down exchanges that trade cryptocurrencies and here in the u.s., the senate panel is holding a hearing next month with top market regulators topic, bitcoin and the risks cryptocurrencies pose to the financial system head back to michelle in wenatchee, washington, meg kaw of the bitcoin mining here in the united states. michelle >> reporter: melissa, yeah more than a dozen companies here in wenatchee, washington three hours east of seattle. mining cryptocurrencies. this is one mine it has 1,800 servers, part of the salcido group with three mining operations minting five to seven bitcoins per day. multiply six times the average 30 days in a month times the current price around $14,000, doing $2.5 million worth of bitcoin every month, and the owner of this group is hoping that they're going to get up to 50 bitcoins per day by july if
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they can secure enough power they are using 7.5 megawatts in just this group, enormous amount of power, enough to power 11,000 homes. the head of the local utility says that they have been inundated with requests. spoke with him, steve wright, thinking a lot about bitcoin issues, ever since the price surged in degs thcember, they h requested, flooded, for more miners. >> gone from a few people out there, knocking on our door and all of the sudden people banging on the door loudly we don't want people to come here to make a quick buck off of our low cost of electricity and leave town and leave us holding the bag and the people of this community holding the bag. >> reporter: to do a build out of infrastructure for a cryptocurrency miner is very expensive. say you'll lay a mile of cable in order to get to a mine and
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then from a substation it can cost as much as $3 million. so they don't want to do that unless they know the company is going to stay in business. right? listen to this they've gotten four requests for 100 megawatts of power their current capacity is only 200 megawatts of power so enormous requests that would require enormous investments so that's why they're also wondering -- is this bitcoin thing real or not? because there's a lot of big decisions to be made at the county level coming up, we'll talk to malachi salcido, the founder of the group. one of the big miners here not a code or computer guy he's a master electrician, and once you understand the issues of power it makes so much sense that a 34569er leelectrician wol get into bitcoin money back to you. >> michelle, quick question, because we've heard a lot about all of the processing power
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generating heat. i know people that are literally heating their homes. how hot is it in there is that a real concern you probably have to crank the ac as well >> reporter: right that's why wenatchee is also good right temperatures are cooler. couldn't do this in the southern part of the country. interesting about this room, master electricians. you can't see them two massive fans and a snowstorm. it's pretty cool on the back side of these, more than 100 degrees, because they're generating so much heat. there's the cooling system running to try to keep the temperature as consistent as possible to make the servers work at peak capacity 24/7, because that equals more revenue. >> all right, michelle, see you in a few minutes interesting stuff. thank you. all right. well, maybe to say it's been a bad start to flu season is an understatement we'll talk about why everybody seems to be sick, and whether or not it's going to get worse. plus --
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are we headed for another possible government shutdown next week? yep. the budget deal back upon us will congress make a deal? if so, more than two wksee at a time "power lunch" will be right back day.we've been preparing for s over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant.
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kayla tausche has breaking news in d.c. senator jeff flake, a republican from arizona, one of the senators leading the small bipartisan group of senators trying to broker a deal on immigration just told reporters that they have a deal in place now, he was short on the substance exactly what it is he said it could be released by the end of the week. possibly as soon as today. interestingly, he said it could be voted on in bill form if the white house supports it by the end of the month, but doubted it would come together by january 19th that's a key date, because that's the next date by which they have to fund the government, and democrats want any immigration priorities to be part of that bill. so we'll see exactly what the contents of it are notably, what they've reached as a definition for border security in which measures are included in the bill.
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senator jeff flake says they have a deal and it could be released in bill form as early as the end of this week. back to you. >> kayla, thank you. bring in rost costa, national political reporter at the "washington post." robert, you heard what kayla just said. unpack this one -- hate to use that cliche phrase, but unpack this for me. what is this signaling in termses of daca? a more complete agreement on immigration, and the possibility it's all linked into a continuing resolution that might extend a government funding for a day or two >> there's movement on capitol hill today you see republican leadership signaling they will keep the government open. that they will have some kind of short-term continuing resolution in the coming weeks should a deal not be done by then leadership sources continue to tell me there won't be a shutdown when it comes to immigration, the president delegated much of the negotiations to congress, even though he had a meeting at
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the white house earlier in the week they believe they can have some kind of border security measure democrats can buy into not a full concrete wall along the border but enough to get the vote. >> can you explain what the president means when he said on the one hand, i'll take whatever -- sign whatever immigration bill you guys send up here, and on the other hand, he says, well, there has to be a wall in it last night i was watching another network, and representative charlie dent, leaving congress, get to the number of gop members in a moment it was amazing to watch him try and explain what "wall" meant. what does it mean? >> depends how you want to define it and depends on the sale that's what the president is looking for. something he can sell to his base as the beginning of the wall project when it comes down to the nitty-gritty of the legislation it could include drones along the border, bolstered border guards looking at the
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u.s./mexico border fencing either, the democrats supported as a provision in the past all of that could come together and be something that has bipartisan agreement democrats can sell it at not a wall and republicans can say, it's a start of a wall. >> a wall to be a drone, could be a person. okay i got it let's move on to something else here that is intriguing to me. there have been a lot of gop members of the house and of the senate who have announced that they are not going to run in the fall of 2018 whether it's charlie dent, darrell issa, orrin hatch. some are leaving because of tenure and age others, clearly, because they face either primary or stiff election tests others because they're just freaking fed up. what's happening here and how -- how much risk is the gop in of losing the house not just the senate.
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>> non-partisan election observers say that the gop house, majority, definitely at risk republicans i talk to every day at the capitol say, look, even though they've got a tax bill through it may not be enough for me to sell that to a suburban voter in my district voters are increasingly concerned about president trump's conduct and behavior not all bought in on the trump agenda and the worrying signs for republicans. what happened in virginia and out in alabama democrats got a foothold in the south of all places and that was a worryi ining sign to republic. >> bob, brian sullivan donald trump doing that 55-minute visualized press conference saying he's go to davos. now this maybe donald trump can support -- is this a preview of what joe scarborough and i have called season two of the reality president? in other words, the post-bannon era? read "fire and fury. you realize how much of the fiery rhetoric coming from the president was likely either
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directly scripted by steve bannon or at least had his influence. what changes can we expect now that bannon is gone? a softening? >> you see in the president, a lifelong democrat before he became a republican, returning in part to his desire to be a winner, seen as someone getting a political victory and will change season two, change how we look at 2018 here in washington and have a cost, perhaps, to republicans. hard core republicans in the house, freedom caucus, don't like when the president dances towards the center politically wary of spending increases part of a fiscal deal and wary of an immigration deal. >> because he cares more about popularity than partisanism? >> everyone says that's the case. millions losing access to stars and other networks but lt says their customers are better pays on their own. plus, how effective is a flu
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shot this year in for an even worse season than we've already seen "power lunch" will be right back
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pretty big day for the markets yet again. fair sow say anytime we go up, record high. where we are now dow jones industrial up another 140 points nasdaq, s&p, russell 2000, lifetime highs by the way you might be able to thank ge best performing stock in the dow
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this year and baker hughes, of which it owns a big subsidiary also doing very well this year a couple whammy on a good size for ge big story, both of those stocks, oil. crude and after the big leveling of 2014. sle, anadarko, apache, big winners. dow winners outside of ge, chevron, intel, caterpillar and boeing. and flu season is off to a rough start and could get worse. joining us from san francisco to tell us why it's happening and what we can expect >> reporter: hey, mel. flu season looking dramatic in the last two weeks of 2017 putting stress on emergency departments. we talked with an e.r. doctor in california what he's seeing so far. >> this is a tough flu season. it harkens back to probably the toughest one i've seen before,
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this was 2009 and 2010, and we see some every year, but this is -- we're getting clobbered. >> reporter: of course, we remember that tough swine flu season back in 2009. a big reason this one is looking so bad, because the flu shot doesn't appear to be as effective this year. dr. anthony fauci telling us, looking about 30% effective. at its best, 60% effective still, flu is big business for the drug industry. about 59% of kids get vaccinated you can see here about 43% of adults in the united states as of last flu season not as high as public officials would like but a huge number still of people. in terms of the biggest suppliers of the flu shot, three major ones santa fe, csl, and glaxosmithkline. santa fe supplying the most, 70 million doses estimated this season csl next, 50 million gl glaxo, 40 million.
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and how much they cost, between $15 and $20 a dose, you can see here this is a several hundred million dollar a year business for each of these companies just in the united states alone guys,even though the flu shot isn't expected to be as effective, public health officials tell us all to get them to try to protect ourselves as best we can back to you. >> these companies that produce flu shots, incentive to invest in the technology to make it a quicker turn around to determine which strains of the prevalent in any flu season as opposed to determining that months and months beforehand? >> reporter: a hugely important question one. reasons the flu shot doesn't look, manufacturing it in eggs companies are looking at technologies to speed that up. of course, a business where people are saying everyone should get a flu shot every year this is a big potential commercial market here also work going on for a universal flu vakzene that potentially wouldn't need taken every year because it could protect against multiple strains. still in the early days of that.
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it's several years away. >> thanks. >> thank you. coming up, the latest in the battle over the future of television and your eyeballs not literally. that would be gross. speaking to the vice president of lions gate, his channel, stars" pulled by a major company. and bitcoin, one of the largest mining factories in the country. how much power are they really using? "power lunch" will be right back it's not theirs. it's mine. mine. mine. mine. the new lexus rx 350l with three rows for seven passengers. are you excited about your baby sister coming? experience space for the unexpected with the rx l, part of the rx family. experience amazing at your lexus dealer.
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i'm sue herera here's your cnbc news update for the hour by a 266-164 vote, the house deciding to extend the surveillance program targeting overseas terrorists overcoming privacy issues allowing monitoring phone calls of suspected terrorists operating abroad. >> this strikes the balance we must have between honoring and protecting privacy rights of u.s. citizens. honoring civil liberties and making sure that we have the tools we need in this day and
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age of 21st century terrorism to keep our people safe >> pregnant women who take antacids may be more likely to have children who go on to develop asthma that those who don't according to new research. up to four in five women siffer from heartburn or acid indigestion. according to discovery, millennials are pretty good managing money 81% are currently saving in some way compared to 74% of generation x-ers and 77% of baby boomers. so you are up-to-date. that's the news update this hour guys, back to you, ty? >> sue, thanks. and pulling stars movie channel from its systems saying cheaper for customers to sub describe to stars streaming service. could be a key battle in the larger and increasingly looming fight over the future of media and julia boorstin has the story today from l.a
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hi, julia. >> reporter: hi, tyler this is an 11-day blackout speaking to the biggest questions facing the tv bundle negotiations at a standstill, blacked out starz and "outlander," roughly 1 million subscribers paying for starz starz included in all of the bundle now they want to offer starz a la carte for an extra fee. a cease and desist letter alleging false statements to customers and starz saying they lied about offering to extend the agreement when, in fact, starz says they were unwilling to pay rates from the prior deal disappointed that starz continues to engage in unproductive public spin to mislead consumers after they spent the last few months insisting on terms that would force the majority of our customers to pay for programming that they don't watch.
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and altice is saying subscribe directly. >> for more, bring in lions gate vice chairman michael burns. great to have you with us. >> nice to see you. >> and you at the heart of this, julia mentioned, notion of the bundsal. altice wants greater flexibility in choice in their video bundles and will continue to advocate for customers' interest and change the current model imposed by programmers and say your viewership of starz is declining overall. essentially saying, people aren't watching and we want to change the bundle. what are do you say to that? >> well, starz has never been stronger look at the hit shows they have. thousands of movies they offer to consumers everywhere, and so what's happening here is it's a little hide the football again, i would say that altice
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is being disingenuous at best and lying at worst very simple. they want to keep, say to consumers hey, look over here. you guys are going to be paying this big price for this bundle and going to have a lot of great channels in there, but guess what happened, guys? in the dead of night we took out starz with thousands of movies, billions of dollars between lions gate in our content and gave you the cowboy channel and charge you the same. ridiculous >> have you seen an uptick in demand for the ott service if consumers really want to watch starz, they might pay for it, right? >> if i were an altice shareholder, well, yes you're looking at, we just renewed our deal with verizon right smack dab in the middle of the altice footprint amazon is a giant player and a lot of people also carry starz in the footprint of altice what's happening is, when they
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say, again, being disingenuous, i didn't say that. lying, maybe easier. go ahead, we recommend youings and buy starz over the top, well, okay but where's the rebate to the consumer where is, where are they saying, hey, we'll give you, for example, showtime did when they came off the air with time warner cable, where's the $12 rebate to our consumers? saying, no, no, no pay the extra money if you want it over the top and we're still going to keep charging you as if it's still in the bundle. >> let me back up a little bit to where you were negotiating with altice. how much was altice charging survibers to receive your channel? or how much were they paying you? what did you want to get paid? and what were they offering you? how far apart are you? these things always get settled by money don't they >> i think altice is a unique
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position look what they've done they're levered up dramatically. i saw a billion and a half dividend separating the companies and they want to get their cake and eat it, too what happened is, i think, effectively somebody said to the accounting department, go find us tens of millions of dollars and sharpen your pencil. they took a pencil like this and basically jabbed it in the eye of their customer. and their surviber, said, okay maybe they won't notice. new yorkers are way too smart to not notice, way too sophisticated. it was a bad call. >> how does this get resolved at this point basically saying altice is lying, ceo of starz said they are lying. how does this mend itself? >> i think what happens is, i think sanity has to prevail. i'm happy to take a call from dexter today, simple which is, guys, let's create a win-win. you were making plenty of money. on the starz bundle. putting it in your package
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we were doing fine and your consumers, customers, were getting great value with thousands of movies, hit television shows across the board. figure out a way to create a win-win. they're not interested trying to figure, how can we save the money and still charge the consumer >> the same price? >> sorry >> the same price? >> the same price as if it's in there, and, yes. it's not in there. and by the way, the cowboy channel is. >> michael, off that topic, brian sullivan two things can you bring back black sales, number one i miss that show on starz. nothing better than pirates, but on a serious note. you have been thrown in the basket of potential buyers of the weinstein company. do you believe that company will eventually be sold or does the weinstein name now scar the company to the point where whatever their assets, it becomes unownable? >> i don't think that consumers are going to ultimately say,
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well, that's a movie i don't want to watch because it was produced by the weinstein company. so we think there's great assets there. we think the library is interesting. lionsgate not known for overpaying hanging around the basket like we do bp a deal good for our shareholders, sure, take them both on. >> actively in talks to buy it >> again, we're always under mdas and i know that in the press it said we are one of the, next round players that shouldn't be shocking to anyone if that were true. >> starz get back on to altice cable systems by the end of the year, michael? >> you know, i hope so i hope, again, sanity prevails here and i think what should happen is they should call up -- call up lionsgate/starz. call them up, starz, say let's really negotiate and not go through the rigmarole last time where we basically were pretending to negotiate. let's give the consumers what
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they want. which is, again, starz in a bundle and, remember, it's not just starz. it's encore, it's 15 channels. again, i think they'll find their customer base is not thrilled with the fact with the bait and switch, what it's been. >> michael, leave it there thanks for joining us. appreciate it. >> nice to talk to you. >> michael burns, vice chairman of lionsgate back to michelle in wenatch wenatchee, washington. >> reporter: this is the founder of this bitcoin mine runs a big bitcoin mining operation here in wenatchee, washington state right after this break, we'll ask him why. how did he get into the business why he believes in it and thinks about the regulatory news coming out of asia overnight. n'move interview with malachi coming up right after this break on "power lunch.
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welcome back to cnbc "power lunch. i'm in wenatchee, washington, here with the founder of the business coin mining operation here one of a dozen welcome to "power lunch." >> thank you glad to be here. >> reporter: power is extremely cheap and you're not cheap explain to me. we understand intuitively whymatters but why is cheap power so important when it comes to mining crypto >> because elevating the block chain networks, specifically the bitcoin network, requires vast amounts of cheap, reliable power, which are uniquely abundant here in central washington state. >> because of the columbia river and the dams tell me about that. >> correct a string of dams along the columbia river provides thousands of megawatts to not only this area but the entire western united states. >> right now you're using 7.5 megawatts to produce 5 to 7
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bitcoins a day hoping to get up to 50 bitcoin a day by july using 50 megawatts of power what will the bill be? >> between $1 million and $1.5 million. >> a lot of money. when people do the math, still profitable at these levels. >> correct >> what happens if there's a big nosedive in the price of bitcoin? >> a very good question. we didn't just get into this base, as you know. we've been here four years our cost structure is uniquely low. we have survived profitably through past dips, and we will survive profitably through future bdips because of our low cost perbitcoin. >> overnight south korea and china both had regulatory news south korea says in will ban trading in crypto. china says they're shutting down miners what do you make of all that worried about that >> no. not especially i don't know if you've noticed but news tends to be sensational
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in the bitcoin space so in both china and south korea, what they are doing is bringing operations both exchanges and mines, into regulatory compliance. they're not shutting everything down they're shutting people down that are skirting the system, regulatory come complianpliance. they're not shutting everything down tax evading and the things they should be doing. the industry is growing up regulatory reform and clienss as apart of that process. >> maybe you would not mind exclusively of bitcoin >> that's correct. >> we understand there is going to be thousands of cryptocurrencies why is bitcoin is the one? why should i not wait for the model t? >> it is a great question. there is over 1300 cryptocurrencies >> lodging is like software. with software you have different types created different use cases and different scenarios and krcrypto is the same way it was designed to be a payment
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and it has first mover advantage. every discuss i call it the my microsoft of country t cryptocurrency there are so many minors that want to come here. there are four requests of 100 megawatts of power which is each of those will be 50% what do you make of all these people wanting to come here. what do you say to all those people who think mining is awful because it uses so much electricity and damaging >> we are at the power source literally. power is wasted and you cannot out source it. we are set up near the source and we are actually more fuelly
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utilizing highly electric dams then they are able to utilized at this point in time. >> thank you very much for joining us we appreciate it we have been here all day. thank you for your hospitality >> michelle, i look forward for your next live shot. michelle, thank you very much. from one washington company to slightly a bigger one, boeing is the biggest driver of the dallas record run. it is has doubled in the past year ldouell it or going up more one analyst talks about boeing, coming up on "street talk. help you with that. ut jjn jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation?
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time for "street talk. >> tax reform will result in a 14% boost to earnings. the analysts is bringing in a modest increase of 2018. citing global traffic growth above the historical trend new aircraft supplies are well above historical ladder. >> second stock is another down component, chevron
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boosting the target from 140 to 120. chevron, in the harvesting mode. higher oil prices lately also, tax reform and they're ramping up some big projects that are harvesting returns. >> new $140 target not that much upside to give today's mood >> third stock is fedex, jp morgan pricing down to 315 it represents 20% of revenues the segment poised to benefit. the price target is 17% upside >> final stock, this one is not too small. dollar tree. they call it one of the best position growth prospect in value tale
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a broad process assortment guggenheim is see a growth >> now to the tl, tyler. >> thank you, guys, stocks start rallying again today new records across the board how many times have we said that >> the earning season is coming up it is going to be full of interesting stories. will stock go higher or will the earning seasons diminished >> is it the start of a healthcare, a robot that reminds you to take your pills >> we'll be right back
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i am brian sullivan. welcome back to "power lunch." we begin with breaking news. lets go to ylan mui with more. >> reporter: the trump administration has taken a critical step of turning the tax plan into real money in your pocket the irs department have put out new guidance telling employees
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how much money they should be holding in your paychecks in taxes. mnuchin expects 90% of workers to see a pay increase under this new tax plan and as far as these bonuses that all these companies announcing, the treasure department issued a guidance saying employees should see a 22% tax rate on those bonuses. companies are being urged to comply with this right away and the deadline to do it is february 15. take advantage of those changes this year. the irs is working on a new w-4 form by the end of the year of a significant amount of workers will have to submit in 2019 in order to see the benefits of the new tax plan guys, you can start checking your paycheck to see if there is anything back over to you >> ylan, thank you very much
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>> you mark the number of exceptions you are going to take as i understand it there there are not exceptions anymore. so you probably don't need to mark your exceptions you want to get you caught up in the market right now on another record day all at lifetime highs. why am i clapping? energy names leading as oil hits a 2018 highs kb soaring on the back of earnings and xerox is soaring. ge is on the rear, it is up 10% for the cigna leads there. now lets head back to michelle >> reporter: this is one of the largest bitcoin mining
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facilities in the united states. we'll explain why they are coming to wenatchee and talk to one o f the local developments to see if the cost on the power system are worth the tax revenue that all these minors bring in rya brian, back to you we are counting down in the heart of earning seasons if you think earnings are just numbers and they are boring, think again. this could be the most important earning quarter in years dom chu, i set you up, buddy that's a fastball down the middle >> it is a fastball down the middle they're going to have to hit the fastball down the middle if they have any chance of continuing the record rally, here is the reason why in order to justify those record levels down the stocks, analysts are expecting a healthy earning season according to thompson reuter, we only had less than 10% ip
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reporting. with everybody else reporting, if everybody else comes in as expected, we could see double digit earnings growth. we can see 7% earnings growth if we do get all of those earnings report coming in as expected >> where is the strength going to be? that's going to be a big part of the story. the s&p 500 energy stocks could grow by 138% material stocks, 25% in terms of earnings overall and the technology sector a big part of the story, 16% as well certainly sectors watched as we talk about earnings season >> thanks so much for dom chu. >> delta is moving high today. phil lebeau joins us with the details. lets take a look at the outlook
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for 2018 on the top of the bottom line, earning in the fourth quarter at 96 cents a share passenger revenue of a 4.2% and they were positive in every region of the world. first time it happens for delta in five years. in terms of the guidance, they have raised it by one full dollar per share and now arranging at $6.35 to $6.70 per year the consensus was $5.94 per share. here is the ceo of delta talking about what they are seeing as they head into 2018. >> the demand environment is the healthiest that we have seen in years. >> we'll see how that plays out. it seems like the market has gotten over heated and we'll see if it settles out. we feel confident that it is roughly 20% to 30% year over year it is our best look.
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>> as you take a look at shares of delta which you are getting a nice pop today they're operating cash flow in the fourth quarter, $1.7 billion that's an impressive number. >> phil, thank you very much >> lets stick with earnings, big banks, jp morgan and wells fargo is set to report before the bell tomorrow those stocks are been on a tear over the past year jp morgan at 26% wells fargo less of a tear of 14%. they have their own issues to deal with. for a look ahead on what to expect, lets bring in jason goldberg and analyst at barkley. it is good to have you with us why don't we take wells fargo first, what are you expecting here and this is a bank that has had a lot of extraneous issues to deal with shall we say? are those issues behind it >> they're a lot closer than a year ago i would say they're not fully
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out of the woods yet kind of improving the culture and kind of leading out and changing over some of the executive teams and really started kind of reengaging customers and marking eting to customers early this year. it is going to be a noisy quart fore them and all the banks and they sold their insurance business and i think importantly they're going to come out with new expense guidance over the last year or so, their expenses have been a lot higher. now with those issues closer to rear m-view mirror, they got to waive those costs. >> crick thougquick thoughts hen freshman economics when you tactic about those tax expense liability, what do they
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arise from and are they a one of and you move on and you got a beautiful road in front of you >> certainly a lot of moving pieces the fourth quarter, most of the big banks have these deferred tax assets you have to revalue those lower so you see pretty significant charges out of city group and goldman sachs. you also have tim pact of earnings getting repre-patriated back so you have to write it off during the quarter beyond all the noise this quarter and as you think of 2018, all these banks are going to benefit and a lot of their earnings are u.s. domicile some of them are increasing minimum wages or some banks talking to one time bonuses but you are looking at the bottom
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line is going to help support dividends buy back and customer growth and long growth should these measures turn for the economy. >> about $75 a share you got a price target of 132 on jp morgan. that's a nice move up. what do you expect there >> we think we are going get another good quarter i think every quarter in the last two years if you back out some of the noises, we think this quarter is no difference on a relative bases they continue to take market share across both retail businesses and they're buying paramedic stocks and they seem to have al good line on the cost side and the credit climate across the industry is seasonally higher before we think that consumers and the corporate have a good shape. >> they have a ceo who knows
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what they are doing. >> thank you >> you bet >> expectations this season is pretty high. where is the strengths and weakness joining us is a leader in middle market lending with $20 billion of capital management. lawrence, it is great to see you. >> great to see you melissa. >> there is some thinking that because analyst haves been ratcheting their expectations, there is going to be disappointment when the earnings actually come. what are you seeing? >> we are seeing in real companies, their first two months earnings of q 4 earnings are keeping up. we got the strongest earnings growth year over year and the history of our index well into the double digits. we are seeing that strengths almost across the board that we invest in. earnings in the u.s. market is keeping up with expectations and
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keeping up with the stock market we have been talking many quarters when you guys publish this index every quarter of healthcare is a weak spot. this time it is showingexpansios >> the margin expansion is really strong. the idea of technology center and media and easterning growth 30%. what dom was talking about earlier in terms of overall s & p forecast and the state is
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bullish for that and he was pointing out strong earnings and energy >> this growth rate that we are showing is even before you take into account the aksccelerationf energy all of this before tax cut hits or take home pay goes up of $100 to $200 a month. accelerated of depreciation is going to push capital expenditu expenditure. >> what we saw is real dry up in demands for commercial loans are you seeing any sort of signs of a pick up at this point and how do you anticipate the effects of tax >> the changes in the tax bill are very good for the middle market companies most u.s. middle market companies pay the headline tax
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rates which is around for 35%. they don't have the sophistication to use the various gimmicks and avoiding techniques to keep a lot of easte earnings offshore. >> it will translate itself into faster growth and even before you take into account of accelerated depreciation there is a lot of talks about 30% and productivity and interest expenses. if they reach it they go over just a little bit and their total tax dollars every year will be down significantly for those companies that do badly under perform, you lost the carry bags which allow companies to get a refund and a tough time the 30% interest deduction limit could have more of an impact in a week's period. >> lawrence golub.
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>> thank you we are going to take you inside of one of america's biggest operations and you maybe surprise of what you see watch out for gas prices because if oil continue to surge higher, it looks bullish but are oil stocks telling a different story? using artificial intelligence te urder people reminding you toakyo medicines, all that and more on "power lunch." nobody's putting their money into equities. they're not investing in commodities or fixed income. what people areally putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo, something wonderful can happen. those people might just get what they wanted out of life. or maybe even more.
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for sale a multi million dollars malibu home. the seller wants for the home to be paid in, wait for it, bitcoin. >> reporter: it is a super high price tag and clearly a super unique architecture. for this seller, it is not just about bitcoin, it is about a smart sales strategy >> for this type of house and this type of amount, i think it will attract more international buyer than our country i am not saying it is safe i just want to take a risk for investment just like everybody else >> now there are not a ton of
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$45 million buyer out there. the booming crypto currency created new ones buying with so far unregulated cryptocurrency helps them under the radar. that expands for potential buyers >> that's our job for marketing property especially luxury real estate is never assumed where the buyers are coming from make sure we get this property out there to say that we are opened to all currencies and crypto is being one of them. he does not want all the purchase price in bitcoin and just some of it, you got to have your bets, right guys? >> thank you very much, spectacular home i read that's his second home. it is a weekend retreat. >> what does his first home look like >> part of the problem that many
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people have with trading bitcoin is they don't understand how technology works and how they are created and hearing mining and visions of west virginia coal company it is maybe processing a better term michelle caruso-cabrera wentmin. >> reporter: yeah, i think so. you are not going to get anything black here. this is a room full of servers, i got one on the shelve so you can see it it is much smaller that's because they're slightly different and their purpose is to do only bitcoin mining. they don't have any cpu in here and they don't store anything and all it does is it has a special integrated chip that does nothing except solve these complicated occasions. when you do that, you do it correctly and fast enough, you
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are rewarded bitcoin, digital currency that we have been talking about over the last couple of years. >> all right. >> you are talking to malachi and asking him of a decline in bitcoin, it is estimated that the break is 6900 u.s. dollars or so? so it would be quite a fall. his coast base is lower >> reporter: yes, he would not tell me. he was very unconcerned of a large price drop because he felt that he had worked so hard to get his average cost for bitcoin far enough that he could withstand. he expects to do a lot of oscillating so to speak. >> why is this processing or mining takes so much power
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>> reporter: so it is running and very intensive and the actual process of what's happening here and it is also running 24/7 all the time. if you think of peek low at sto historically at your house and everybody is home and you are running the oven and in the evening that's when everybody is on television or on their computers. why the utilities get so nervous about it because utilities are not meant to work like that. they're meant to deal with shifts and weather and people coming home and this is a start. to answer the question of why so much because the processing that's happening here, it is so intense. >> how many people worked there michelle imaging it is not much servers.
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>> reporter: he's got 50 employees. he sub contracts a lot quite a lot within the area to help with cables and etcetera, it is a capital intensive business more than one that's got a lot of employees. >> all right, michelle, we'll check in with you a little later on fascinating stuff. >> first responders swarming santa barbara county after a series of devastating mudslides. ot the death toll, destruction when we return "power lunch" will be right back
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following a series of deadly mudslides, rescue crews are coming santa barbara for the hunt of survivors. live in montecito california for the latest scotty >> reporter: we understand ther are still people outstanding this is a 101 freeway, as difficult it is, this is one of the main highway for california. there are two people in rescue gear they're in the back in if actual
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scoop and they're going through. we watched them probing the waters they have not been able to drain the water just yet we know there are still eight people that are missing. those rescue crews are going through this area and trying to see if they can find anybody here we do know there was a boy that was found here that was alive shortly after the mudslides happen those mudslides came all the way from the mountains right there that's the burn scar from the thomas fire and so much debris and boulders and cars were swept up from that mudslide. much of it is spilling done to the 101. more of it crossing the bridge and ending up all the way to the pacific ocean. back to you guys >> thank you very much for that report, horrible to see. news about the super bowl and olympic advertising
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lets go to the white house briefing room where treasury mnuchin is live. >> this is just the first step in a three-step process. next, the irs will be releasing a new withholding calculator that'll be available on irs. gov by the end of february it will help provide individuals of certainty so whether they are over withheld or under withheld. we have reviewed this carefully. approximately 76% taxpayers were withheld so they have refunds at the end of the year. we expect based on the new tables, there will be no materials changed in this
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number we'll encourage taxpayers to use the calculator and we'll launch a marking effort to make sure that people understand that. finally, i would like to say the treasury and the irs will work together to release a new w-4 for 2019 we'll meet with employees and payroll providers to determine how to best to design the form to reflect the new laws. the irs will focus on simple process. these new tables will help deliver the tax cuts as soon as possible to as many americans as possible with little destruction as possible. this will continue to focus and fill optimism or economics into this country i want to highlight the announcement from walmart this morning, we want to thank them, they'll be increasing their minimum wages and issuing bonuses and expanding family men
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fi benefits for over a million employees. >> they join over 130 other companies across the nation who have already given such a relief we are now up to over 2 million workers who have seen special bonuses or additional wages. with that, i am happy to answer any questions. i have to start with you because you have the hat >> in regards to walmart and minimum wage, does that mean we can expect movement of the federal governments perhaps to increase the federal minimum wage for everyone? >> the most important issue is for companies to increase their wages and walmart's number is above the minimum age. it is an issue for state
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the real focus which is what the tax cuts and there is been more money that we settled along. i believe 70% of this will return to workers. >> you believe they should raise the minimum wage >> mr. secretary, on february 1st, will these withholding tables go into effect and that's when the american taxpayers will first see a change in the withholding of their paychecks >> it will be in february, some companies will have it set up for february 1st, and some companies may have it the next pie cyc pay cycle. we are encouraging companies to do this as quickly as possible we are ahead of schedule and we are expecting at any event it will be in february. >> what mattis the strum trump administration is going to replace hang out for globalists. >> the idea of economic team is
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going to go over and talk about the america's first economic strategy we are thrilled that the president is coming. the economy is good for the u.s. is good for the rest of the world. >> we just talked about walmart, that's a big deal. what has been the efforts with walmart with this administration for them to raise their wages. >> again, the whole purpose of the tax cut act was to put more money in companies so that they can compete competitively with international companies and i think you know we have one of the highest tax rate in the world and we taxed on worldwide income and we changed that it is a revolutionary process, we thought it will be great for the economy. we are thrilled of the number of companies we see reacting. >> how long are we talking about? >> we have been talking with a lot of companies for a long time we are thrilled how people are
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responding >> there secretary you are using an out dated or w-4 form for this year you will encourage people to go onto a calculator on the irs website, maybe try to figure things out, taxes are messy to begin with, how is this not going to lead to in one way or another some sort of implementation mess? >> i give an enormous amount of credit for the team at treasure and the team at irs that's been working around the clock for the holidays we had an existing form and technology we have to figure out how to fit this in this format. the fact that we have been able to keep the same percentage of people we ran a lot of models to run this that's phase one and phase two, as soon as the calculator comes out. the calculator will work with the new tax system, child tax
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credit and $10,000 deduction a taxpayer can see do i have the right number of exemptions filed or i am going to adjust that we are going to try to do that and i want to make sure we get a lot of feedback as we design that and update this >> there are three steps implementation process of a massive tax system there is no way it was rushed to get it out there for paychecks we update the withholding tables every year there is more work our objective is to get people money as quickly as they can 90% of the people will see changes. >> yes, in the back. >> i want to be clear. it sounds to me that you are saying the administration policies are responsible for the walmart wage rise. but the layoffs had nothing to do with you, am i understanding
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that correctly >> what i am saying is the administration economic policies are a function of what we see growth in investment different companies will do different things some companies will invest in capitals and some companies will return money to workers and a lot of things are going on in the economy, we appreciate what walmart is doing >> last year xi jinping made a speech and we talked about ice isolatism. is the president going to respond to that line of argument, what is he going to say? >> i think you heard a lot of the president's messages i expect it will be consistent i expect the president will talk about trade, reciprocal, free, and fair trade we obviously have been very clear with the chinese on the issue that we have with the
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trade deficit and making sure that u.s. companies can compete fairly and the president will talk a lot about his economic program and the impact on the global economy >> thank you, mr. secretary. at the sate, ctate, can you givn update over nafta. how concern over this administration that canada have made a complaint over, mexico is concerned of this administration will in short order withdraw from that. i will get an update this morning on trades, he's pleased on where things are going. the ambassador is doing an amazing job of re-negotiating nafta and we expect for it to be re-negotiated or we'll pull out. >> can you give us an update on the treasure's progress that congress has asked for i believe we were expecting sometimes in january
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>> we are working on it as we speak. it should be released in the near future. something we are very focused on >> mr. secretary, you are protecting there won't be a great decrease in the number of america american taxpayers, basically the same number that's been expected to get a refund all along, is that correct >> that's correct. >> can you then address the democrats charge that you guys are reducing this in. >> this is another ridiculous charge that's why i want to make clear there won't be a change in that number. we have people working very carefully on this. our objective is not to have taxpayers over withheld so they owe money at the end of the year as i said, we have a system, 90% of the people will get money kind of the same number of people will get refund and we'll
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actively encourage and make sure that taxpayers understand how to go on the calculator once it is up and running, we'll work with payroll providers and companies. >> are you expecting -- we continue to look at them and roll them out, you can expect it to be more sanctions coming. >> thank you, mr. secretary, leaders in some state, connecticut and new york and new jersey are talking about ways to limit the impact such as letting people paying the property as a way causing deductibles, is the administration is going to halt any of that efforts and how are you responding to that >> i don't want to speculate on what people will do. i think it is one of the more ridiculous comments to think
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that you can take a real estate tax that you are required to make and dress it up as a charitable contribution. i hope the state is more focused on cutting their budget and giving tax cuts to their people and their states than they are trying to evade the law. >> is this something that the administration concern about >> that's gone from 10 trillion. we are focused on the debt and economic growth. it will create more revenues for the economy. what can we realistically expect, by the end of the president's first term -- >> i don't have a projection for that right now but thank you
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>> thank you talk about the tax being flatter and 90% of the tax will benefit from it yes, it would seem under those circumstances that we'll eliminate a lot of deductions which so many small businesses and self employee people depend on is there a major cut in deductions and how do you expect that will play with the small business community >> this is about tax simply occasion and getting rid of deductions on small businesses, one of the best features of the tax plan are all the, there are tremendous incentives whether it is discount for pass throughs. i mean we heard more good news from small business than even from walmarts of the world
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>> mr. president >> mr. president >> i am sorry, mr. secretary >> mr. secretary, in talking about the impact and the benefit that most american workers will see under the tax cut plan, will this be a good day for the president to release his tax returns so we can see how he benefit f benefits from the tax cut bill have you recommended that? >> i have this question before when i have been up here i will give you the same answer that i give you last time. >> i think there is a ton of financial disclosure that the americans have give with the american people. the president will decide what he wants to do >> what does the administration hope to achieve on the additional sanctions on? >> the president have been very
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clear that many aspects of the iran deal needs to be changed and that there are many activiti activities outside of the iran deal whether it is ballistic missile or other issues that we continue to sanction and we could not be more focused. we have as many sanctions on iran today as we have on any other country in the process and we'll continue to look at it >> just two quick follow up. of the issues that could come up next year. are you at all or are there any considerations in midterms and giving more time to sort it all out. >> let me just explain >> the irs issues tables every january.
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we knew we were changing the tax bill so it obviously made sense to wait from january to february so that we give people time to institute this any claims that we are doing as for political issues are ridiculous, okay and i will make a comment of the democrats made a bunch of noise about our numbers and tax policies, the inspector general just came out with a report that made it clear. there is no political interference in this and how reran these numbers. >> i hope the democrats are doing things good for the economy and the american people. >> you talk about the message being consistent and the president will deliver in switzerland and one of his big messages have been aimed on middle class americans i am hoping you can explain how it is consistent to take members of his cabinet who are very wealthy to rub elbows among
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other people in wiswitzerland. >> i can assure you the members of his cabinet have no interests over there in rubbing elbows with anybody this is about meeting our counter parts and all about creating jobs and economic growth for the u.s there is tremendous investment in the u.s. there is tremendous trade deals going on the president has delivered and is delivering for the american workers. i can assure you it had nothing to do with that. >> people are worried of the new tax code and the high deductions could limit given to charities do you share that concern? >> i don't share that concern at all. we raised the limits that rich people can give to charity
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>> will the president decide on the iran deal? >> i am not going to make any specific comments on that. it is still under discussion and i know the president is contemplating his recommendations. thank you very much everybody. >> that was treasure secretary steven mnuchin and discussing among other things, the fact that new withholding tables will be be or have been he commented on the news that walmart will be raising its minimum wage for workers and throwing in bonuses ranging from $250 to $1,000 and a bunch of benefits there he talked about additional sanctions coming in the way of iran over the next days or
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weeks. so we'll be talking about that and more when we return. two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade.
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let's get to julia with the news alert jewel ja >> reporter: comcast shares
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trading higher 3% on better than expected very, very strong advertising numbers. stronger than last year. from nbc universal, which is, of course, nbc's parent company, about the super bowl and also the olympics the company announcing that it's nearly sold out ads for the super bowl, which is, of course, coming up on february 4th, with less than 10 ad units left ads are averaging around $5 million per 30-second spot that's right in line with last year as well as the year before. nbc universal saying pre-and post-game ads are well sold as are ads for the "this is us" special airing after the game and saying february 4th will set a single-day record for ad revenue set by a media company also announcing that winter olympics ad sales are pacing ahead of sochi on track to exceed $900 million national ad sales, which would be a winter games first. all in over 22 days in february, the company saying nbcu krwill
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deliver close to $1.4 billion in ad sales between the super bowl, pregame, postgame and winter olympics one interesting nugget from the conference call held by , he sai at the super bowl this year we're going to be seeing more longer ads rather than shorting ads so a lot of brands are looking to 60 seconds and beyond interesting trend considering some of the shorter ad pods we're seeing in the regular nfl season, just the end of last year comcast shares now trading up over 3%. >> that's fascinating. longer ads julia, thanks very much. what a month it will be in sport and for nbc. let's get back to michelle in winitchi, washington, the bitcoin mecca in the united states michelle >> reporter: yes, we are live in one of the bitcoin mining operations here and joining us is ron, he is in charge of economic development for the local port authority called the port of douglas. ron, thanks for being here. >> thank you for having me. >> reporter: what do you think of all these bitcoin miners coming to wenatchee, is that
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good for bad for the region? >> it's good for the region. we're seeing it really diversify our economy. there's millions of dollars being invested into the community. it's going to help our tax base bring in high-wage jobs into the area, so the businesses are becoming invested. and working in our innovation partnership zone so it's a good thing for the economy. >> reporter: how much tax revenue does it bring in, and how does it bring it in? >> it brings it in in a lot of different ways we have the sales and use tax that is paid on all the materials and building and services and then there's real and personal property taxes that are paid into the county and the state on an annual basis >> reporter: the county also has very fast interprnet service. correct? >> correct we have some of the fastest internet service that you're going to find. >> reporter: a gig bit
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>> yes, we can thank our puds for building the infrastructure out for us. >> reporter: that is the local utility, the two things that bring the bitcoin miners here. >> it is, the low power rates and the internet. >> reporter: so do you think bitcoin is real, are you worried that it's not? have you thought about this? >> the cryptocurrencies part of this isn't really what excites me as much as the underlying technology, the blockchain technology i think is going to be revolutionary as we move forward, connecting the internet of things, scientific uses, i just -- it's really going to -- it's really exciting, i guess. >> reporter: to remind our viewers, we've been telling them this, but electricity here is extremely cheap, 2.50 to 3 cents per kilowatt hour, perhaps the cheapest in the entire country how much bitcoin miners can you take in wenatchee, you want to welcome them all, or >> actually in douglas county just on the other side of the columbia river, our
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infrastructure is actually being put to the test. we're full currently. we have 100 megawatts of infrastructure being built out right now, just in data center development. so, it's going to take some time to catch up because the growth has been so quick. >> reporter: so if you wanted to add more capacity, the columbia river could put out more megawatts of power, right? it's the infrastructure to deliver it that -- >> correct. >> reporter: -- that is lacking at the moment. how much would that cost, do you think? >> millions of dollars >> reporter: yep got it thanks so much for joining us here on "power lunch" today to talk about bitcoin mining in wenatchee. >> thank you, been my pleasure. ow reporter: all right "per lunch" returns right after this with "check please.
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they came out of nowhere, sir! how many of 'em? we don't know. dozens. all right! let's teach these freaks some manners! good luck out there, captain! thanks! but i don't need luck, i have skills...
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i don't have my keys. (on intercom) all hands. we are looking for the captain's keys again. they are on a silver carabiner. oh, this is bad. as long as people misplace their keys, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance. and another company raising its minimum wage let's head to dom chu. >> reporter: tyler, this is capital one financial which just confirmed to cnbc they will raise the minimum wage for all u.s. h f ba-placed employees at capital one to $15 an hour it's unclear whether this is directly tied to the tax cut and jobs act but still joins a host of other companies who have already waged minimum wages or given out bonuses citing specifically the tax cut and jobs act, guys back over to you >> all right thank you very much, dominic chu. all right. time now for "check please." walmart announcing bonuses and raises that's a good thing. then they on the same day, sams
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club subsidiary announced it's going to close a bunch of stores each store employs 175 people. that's a couple thousand layoffs. walmart, you're generating good will and then saying people are going to get laid off. pr departments need to coordinate. >> it's odd they'd see it on the same day. >> positive outcome of the tax policy that i think not a lot of people were anticipating or factoring -- >> that's a good news story. then people getting laid off. >> absolutely. michelle >> reporter: hey there, guys my "check please" today, being live from bitcoin mining operation has been incredibly interesting. covering blockchain is the most interesting thing i've done since the greek financial crisis really, really a food for thought to use a very bad cliche, but thanks for watching today and let me know on twitter what you think about it all. >> apparently google maps says you need to go upriver to
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levinworth, washington, a village designed to look at christmas all year if you have free time tonight. >> reporter: i saw that. i should go. yes. >> send us a picture michelle, good work out there. thanks for watching "power lunch. >> "closing bell" begins right now. zblnk hi, everybody, welcome to the "closing bell. i'm kelly evans a the new york stock exchange. >> i'm bill griffeth the dow, the s&p, the russell. look at the transports everybody is back in record territory. the dow transports are up 2 1/3 with the airlines and others doing very well today. >> how about the small cap rustles lagging to start the year up, up as you see that rally playing out across market. we're going to have more on that in a few minutes including whether bank earnings tomorrow will

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